Oireachtas Joint and Select Committees
Tuesday, 28 June 2022
Joint Oireachtas Committee on Housing, Planning and Local Government
Inflationary Costs in the Construction Industry: Discussion
Ms Tina Donaghy:
Purely on viability, and especially in Dublin at the moment, when we are reaching these levels.
I wish to go back to the Deputy’s point about the payment and availability, P&A, agreements being based on a market rent. It is not market rent. I can have a market rent of €2,400. It is much more beneficial for me if I go in at a market rent of €1,500 and get 95% than going in at €2,400 and getting 50%. The whole basis of the viability sits with debt-service coverage ratio. That is where our barometer sits now. It is not about market rents. There is no race to the top to see who can get the highest rent. That does not work like that.
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